Leesa Sleep - David Wolfe

How To Build A $45 Million Dollar Company In 8 Months (Leesa Sleep)

Leesa CEO David WolfeIf you’ve ever been curious about what it takes to grow a company from zero to multiple millions in less than a year, this is an interview you’ll love.

Meet David Wolfe, the CEO and co-founder of Leesa Sleep.

David and his amazing team have built Leesa Sleep into a $45 million dollar machine in 8 short months. They’ve been profitable since day 1, and they recently raised $9 million in venture capital from TitleCard Capital. Given everything that has happened, it’s no surprise, that David describes the last 8 months of his life as “the most exciting” of his career.

In this interview, you’ll discover:

  • how David built Leesa Sleep into a $45 million dollar machine just 8 months after launching
  • how to develop a powerful purpose that’s bigger than just making money
  • how Leesa Sleep used viral triggers in the buying process to explode word-of-mouth
  • how to use influencer marketing to increase sales
  • the secret sauce behind Leesa’s rapid rise in the $14B mattress industry

People on this episode:

Mentioned in this interview:

Listening options:

Transcription:

Welcome to ReEngager Podcast for online retailers and e-commerce stores. You’re about to discover how to increase sales by 15 to 30% or more with email marketing. If you’d like to learn more about ReEngager and how we help online stores like yours add millions to the bottom line, go to reengager.com. That’s R-E-E-N-G-A-G-E-R.com.

J: I’m your host John McIntyre. And today I’m talking to David Wolfe from Leesa Sleep. Now David was recently on Necker Island with Richard Branson. And he has a really cool story. But the, the interesting part – the reason why I wanted to get him on the show, was because he built an amazing mattress company. They’re expected to do 30 million dollars in sales this year. They’ve raised 9 million earlier this year, at a valuation of 45 million. And they’ve won, I think they’re one of the winners of the Shopify competition this year as well. And what I really liked, which I thought was interesting, was that David has been doing direct marketing since 1987. So applying a lot of direct marketing stuff to growing an e-commerce store. Which I’m very interested in how, how he’s done that. So wanted to get him on the show and find out exactly how him and the whole team over there have been able to do it. David, how you’re going today?

D: Great, thanks for having me on your show.

J: Thanks for coming on, thanks for coming. Now before we get into some of the nitty gritty of how you’ve built Leesa, and how you started it, all of that. Can you give me a bit of a background on who you are and what you do?

D: Sure yeah. I’m, David – David Wolfe. And I would say in a sort of traditional sense of the word, I’m a serial entrepreneur. I started several businesses going back into the 1980’s actually, which dates me a little bit. I started out life as – really strangely an undergraduate engineer, but soon saw the light. And was a strategy consultant for several years, and learnt an awful lot about distribution channels. And the first one that appealed to me, that was sort of right for disruption – back in the early 90’s, was the travel industry. When travel agents have still got commissions for writing tickets out for airlines.

And I knew that would go away, and I moved to the States from the UK in ’94, and I started a company called The Vacation Store, in 1995. And we were basically converting viewers of travel programming into buyers of vacations, mainly cruises and all inclusives. And basically I learnt a lot of things through making a lot of mistakes, doing a lot of things right. Understanding the need to measure every number. And ultimately direct marketing is a numbers game. You pay for a lead, you have a cost per lead, you have a conversion rate. And then you have a overall cost of acquisition. And that relates to the amount of money you make on every transaction. I built that business up. It was called The Vacation Store. We had a half hour show on the travel channel 3 times a day, called “On Vacation with the Vacation Store.” And as you can imagine, it was before the internet. The internet came along, I was the first to pay for key word “cruise” on AOL. So I was very early on the internet. I sold that business to America West. And then, that was in 1998.

And since then, I have done many things around direct marketing. And I call it bringing new ideas to life. So I’ve worked with some of the major consumer products companies helping them build direct to consumer businesses. Companies like, I’ve worked with companies like – Proctor and Gamble, Chlorox, General Mills, Purina, and VF Corporation. And every year, I’ve tried to think of the big idea that will allow me to start a business of my own, with my own product that will allow me to stop – get off this sort of hamster treadmill, the hamster wheel of constantly having to go out to sell services to these big companies.

And at the end of 2013, I met a, an old friend who was a mattress industry veteran, and made some side comment to him about, “Do you think this time we could sell mattresses direct to consumers, if it was a luxury mattress?” He said, “Funny you should say that.” And here we are in our eighth month in business, with 3 and a half million in sales this month. And it’s been an absolute whirlwind, and probably the most exciting period of my career. It’s not something you expect in your early 50’s to be compared with young, fast moving, aggressive young entrepreneurs. And I think in many ways, that brings a lot of advantages to our business, that I’m not young. But that’s really the background, and that’s where we are.

J: Interesting, interesting. And now did you expect it to happen? It sounds like you didn’t, but before you– When you were on the verge of starting this, when you chatted to your friend about it, did you expect it to happen like this? Or was this sort of a stab in the dark, and then it just – it just sort of happened? It’s been an amazing few months and, yeah–

D: That’s a very interesting question. And I always say to everybody I work with, whether it’s my own team – and I have an extraordinary– I built up a world class team of direct to consumer marketers and e-commerce experts, social marketing, digital marketing experts and technologists so – and designers. So I’ve built this team, and I always say to clients and to our own group that, “We should plan for success, but we shouldn’t expect it.” And so, the honest truth is that, no we didn’t expect it to be this incredible. But we definitely planned for it. So we really haven’t missed a beat. We hired the – someone who’d been responsible for new hire training in an Apple Store to do our customer service. So we were going for the best kind of customer service. Our designer has designed some just incredible user experiences for some of the world’s leading brands and companies. Our technologists are top notch, and our marketing team is. And so, no we did not expect it, but we were definitely ready for it. And we’re definitely grateful.
J: Good, good. I like that. What, I’m very curious about – before you got into this, and you mention that you can plan for success but you can’t really expect it. What did you do to plan for success in this situation?

D: The first thing is I’m not a great believer in the whole concept of a minimum viable product. What I said was, “If we’re going to launch this business, we need to launch it like – as a successful company.” So it’s a whole process of visualizing what success looks like, and building a business – and only hitting the green light when we’re ready and we really believe that we’ve put in place what it takes to build a leading business. Particularly where the goal is to disrupt an old stodgy business with some really massive players.

So planning – I remember back in the 80’s, again it dates me. But I read this quote from Ink magazine that said that, “Planning is dull, boring, and the province of the large company bureaucrat, or so goes the entrepreneurial myth. The truth is that planning is the key to being fast, mobile and opportunistic. The very thing entrepreneurs cherish most.” And that’s really been my belief. So I’ve had planning techniques that everyone who’s joined me over the years is familiar with. It’s a process, it’s a technique that I wrote in an article back in 1987 about treating a business as though it has fundamental building blocks – it’s people, it’s product, it’s systems, it’s financial controls. It’s marketing and sales, it’s procurement – everything about it is there.

And then externally, we kind of use a version of Porter’s Five Forces from his corporate strategy book. Where we add a little bit to it, but we look at the forces on the business externally – the competitors, the suppliers, potential entrants, competitors. And then we also look at the trends. And we really actively, we go through every part of the planning process. All the “what if’s?” All the scenarios, we build a phenomenal business and then we write action plans. It’s not just about kind of where we are and where we want to be, but how are we going to get there? And we write action plans, we make individuals responsible, we manage the business very attentively.

We have what we call a top 5 management process, which is that we only talk about the top 5 things that are on anyone’s individual agenda for the next week. So we don’t get bogged down in conversations about unimportant things. And we just have a process that we’ve developed over time that’s very rigorous and seems to work – or seems to have worked anyway in this case.

J: What I like there is how– In start-up land or in just in, just in the whole like entrepreneurship game. Tons of companies and people try and pass it off like it’s this – you have that lightbulb moment, or you just put together a thing on a napkin, and then you go out there and make millions of dollars. But in your case, the way you described it doesn’t work like that.

J: No, I mean it’s – it’s tremendously hard work. And I think also you just want an incredible team of people around you. I mean, not everyone can afford it. We had the benefit of a really successful track record that brought – the fruits of a successful track record. And allowed us to self-fund the start up. But every aspect of the business, and we really talk about this business in terms of 5 brand stories. One is the product. A lot went into producing just a real industry beating product that meets consumer desires head on. Second one is the value. We engineered it so that we could offer a truly luxury mattress for under $1000. And it’s exceptional value. We changed the entire shopping experience. So if we were going to convince people, rather than go to a store and have that sort of awkward moment. I’ve got this sort of picture of a– (ringing noise) Excuse me. I’ve got this, where – how far back should I go?

J: That’s fine, no just keep – continue.

D: Okay. So I’ve got this picture in my mind. We all do, that we kind of keep front of mind of the– The salesmen in a sort of somewhat dirty suit, standing in the doorway of a mattress showroom smoking a cigarette. With a big 70% in one hand, and 50% in the other – trying to lure you in. And then you’ve got to lie on a bed while he looks down on you, when you try it out. We wanted to change that whole experience of smoke and mirrors. And so we changed the shopping experience, but we really gave people a quality, simple, straight forward online experience. And actually in the product development, we took out all of the hocus pocus around, “This mattress will do that, and that mattress will do the other.” And we created one mattress with a– We created one mattress with a universal feel.

And then, we also have 2 other stories that we talk about. One is that we want to be part of a wellness kind of program, or a wellness drive. We genuinely believe as a group, and we’re passionate about this. That sleep is life’s great rejuvenator, refresher. And if you, if you exercise and if you eat well – then sleep is going to be the most important part of the whole sort of 3 legged stool of wellness. And I heard a – someone speak this week. He was a fitness kind of guru type person. And he said, he said, “If you could get someone for half an hour in the gym, or if you could offer them half an hour’s sleep, what would you do?” And he said, “Always half an hours sleep. Half an hours extra sleep is always going to do you more good than a half hour extra in the gym.” So that was important.

And then, without wanting this to sound too much of a monologue, almost the most important part of all in terms of the group of just incredible people that I’ve got here – is our sense of purpose. So when we launched this company, we said, “We don’t just want it to be about our bottom line. This has to be to some extent, making a difference.” And so, from the very beginning we, we put in place social impact programs, where we donate one mattress to a shelter – to someone who otherwise wouldn’t be sleeping on a mattress tonight. We donate one for every 10 we sell. And we also, in terms of kind of giving back to the earth if you like, have a One Earth program. Where we donate, where we plant one tree for every mattress we sell. So we have a large budget that comes straight off our top line and off our bottom line. That goes to our social impact program. And that, everybody feels that here – that sense of purpose. We’ve all been to our major donation events, and everybody everyday feels like, “This isn’t just about money.” If fact, we don’t talk a lot about the money we’re making. We talk much more internally about the number of mattresses that we’re giving away and the people that are benefiting from our success.

So it’s been really sort of in many ways, a labor of love. And I think you have to get that passion and that love into your business. And you have to kind of instill that in the whole team and share it everywhere in order to be successful in an entrepreneurial business. ‘Cause success isn’t a straight line. It’s a really squiggly line that goes up and down and backwards and forwards, and eventually comes out the other end hopefully going in the right direction. And during that whole messy period in the middle, while you’re getting from where you were. Which is nothing to where you want to be, which a successful company. Everyone’s got to constantly work incredibly hard.

J: It’s interesting, because a lot of people talk about following your passion and living your authentic truth and these types of things. I think the tough part is – and I think everyone finds this, not just entrepreneurs or people trying to build companies. Is developing that, ’cause some people seem to just – they’re born with it or they discover it at a young age. Most people seem to, they have to whittle away at it for years and years and years to really figure out what gets them juiced. So I think a lot of people, and I’ve certainly struggled with this in my own businesses that I’ve built. Where it’s a bit like how do you – how do you develop that? How do you go from being in business just to make money? To being in business to, to really make a big difference? What – how do you get to that point?

D: That’s an interesting– First of all I think kind of age and a degree of success affords you that luxury. But I think you did make a point that – I don’t necessarily think you’re born in a certain way. But I – I have, I always say, and always have said to anybody working with me in any of the companies that I’ve ever built that giving is a huge part of what we do. And even in my most difficult years – and believe me, and I’m sure you know it and every other entrepreneur knows it. Not every year is a great year in the life of an entrepreneur. But even in my most difficult years, the one number that never leaves my expense side of my P&L account is our charitable giving.

And it’s just something that I’ve always felt – not just giving money, but giving of time. I mean our, we give people time off and we organize local events where we go and help. Even if it’s just going to the local shelter to help them with – do the lunches. We do that as a company. And I don’t know what triggered it. I think that we’ve raised a, we’re raising a generation of – at least the sons and daughters of successful entrepreneurs are raising a generation of really quite privileged kids. My kids are, my girls are 22 and 26. And I’m sort of proud to say that actually my younger daughter runs the social impact program – at least right now, at least. So she’s on a year between – she’s on a year between her undergraduate degree and her graduate degree. And she’s off to do a master’s in social work next year in Denver.

So it’s just, it’s just a passion that – the passion for giving back. It’s really, really easy to get it, I can assure you. But not everybody joined this company realizing that that’s what they were coming here to do. But I see the tears in the eyes of almost everybody here when we do something that is really a privilege to do. Where we go and help, and we hear and we see the people who are the beneficiaries of what we’re doing and our good fortune. And the impact it has on everybody is – anybody, is just extraordinary. And I think all you need to do is taste it a little bit, and realize that it’s really one of life’s amazing privileges. To be part of an organization that has a social impact program that is really – having an impact. And I think that’s the important thing. If what you do has an impact, and you get to see it and hear it and–

We had a guy in a shelter in New York just say to us, “You have no idea what a difference this is going to make in the lives of the men who sleep here.” He said, “I know, ’cause I know what it’s like to sleep on a park bench.” And it’s like, the impact it has is just extraordinary. And we get little notes at the end of letters from people that say, “Can’t believe that it was a – that I slept on a, on a shelter mattress.” So it’s just, I think once you do it, it’s easy. Making that little step to go from a full profit to a full profit. And for purpose business may be difficult, but believe me, the rewards are – far, far outweigh the dollars that you take home at the end of the day.

J: That’s really cool. It sounds like, I mean all of this stuff, the purpose, the charitable stuff. All of these things make up the foundation. And it’s probably put you on a very strong – yeah, very strong foundation through which you could then execute on over the last 8 months. So let’s, I’d like to know a bit more about what you’ve done since then. Since you sort of – obviously talked about a lot of the how you’re helping people and the 1 mattress that you give away for every 10. What sort of – with that strong foundation, with the purpose behind it. What have you done since then with the–? You mentioned direct marketing has been huge for you. What sort of things have worked really really well to grow the company over the last 8 months?

D: So I think the fundamentals in the industry have to be there. I mean, we are in a high ticket item – our average transaction value is close to $1000. Where in a high margin business. The margin high, quite honestly, because of the – the waste– The margin is high quite honestly because of the waste and the– Within the encumbrance. So, if you’ve got lots of real estate out there, which you do in this industry. There’s a mattress firm, or there’s a Sleep EZ (20:20?) or there’s a mattress discounter. There’s – everywhere you look, they’re out there. Department stores and all that real estate is being paid for in the price that a consumer pays, and all the commissions are being paid for.

So, first of all, mattresses in a regular store cost about twice as much as they should. And then, when you reverse engineer that and you take out some of the unnecessary bits and pieces – you get an incredibly high quality mattress for a, really an extraordinary low price. And so our goal was to create a mattress that compared with like a tempurpedic mattress, but actually dealt with some of the negatives of tempurpedic. That might cost you 2 or 3 thousand dollars, but to offer it for under $1000. So a lot of work on the product, a lot of work on making sure the industry’s right.

And then I think– I heard Tim Ferriss talk about the tip of a spearhead, in terms of how you aim your marketing. And we are very, very careful. We have a – I know this sort of sounds like a lot of jargon. But we genuinely do this. We have a 7 step process that we go through to create our marketing messaging. And the first thing that we do is that we make sure that we’re meeting the very real need of consumers. So there are millions of millions of – home in America, and we’re now in the UK. And the question is, who’s going to buy our mattress this week? And it isn’t someone who doesn’t have it on their mind right now. So all our messaging is targeted to people who are in the market to buy a new mattress right now. And that’s people that are either moving or they’ve got an old mattress, or their back’s aching. Or they’ve got a guest room that they need to put a new mattress in.

So everything that we do ignores the sort of, “Let’s just build a brand for brands sake.” And talks directly to a consume need. And I think that that’s the biggest lesson that we probably brought from direct marketing in terms of messaging. Talk to the people that are buying right now. And you may not get as many leads, you may not get as many likes on Facebook. You may not get as many, as many visitors to your website. But you’re going to get an incredible conversion rate if you get it right, and it’s going to cost you a lot less. And we– And then it’s all about the numbers. It’s like, and we measure all day every day, and we make changes.

I mean we have some things – today, this very day, where the day kicked off very slowly. We had an internal meeting at 11:30, we changed our creative today. Currently today, we’ve made major changes across all our creative on campaigns we’re running right now. And within an hour, we changed the direction of the day from a very slow day – to what’s going to end up being a really quite good day. And then, hopefully that’ll put us in good place for the next few days, to have extraordinary days again. And it has been an extraordinary ride. I mean, every week we have record days. Every day something just amazing happens. Whether it’s someone famous that’s tried our mattress, that’s shared it on Instagram. Or just someone said something great about their experience or we found a new way to market that we didn’t have before. It’s just day in and day out, just looking for ways to get better and better and better.

J: What channels have you been working with? You mentioned Instagram, which, it’s been fascinating to watch the growth of that and how – the companies who build million dollar companies just out of Instagram promotion. So what sort of – I mean, the standard stuff with e-commerce is, put some product ads in the Google Shopping and things like that. Are there any channels that have worked really well for you?

D: So without giving away all our secrets, I’m actually going to introduce Matt Hayes right now, who is head of marketing for Leesa. And he’s worked for me for about 4 years now. And so – came from this, part of this amazing team that I already had in place when we started working on this. And you’ve asked a question that’s much more in his realm than it is in mine. If you don’t mind, I’m just going to let Matt answer that question.

J: Sure.

M: Hey there. So I think, to David’s point. I mean, from the get go, I think one of the things that we did which was really successful is we created virility in the product. And what I mean by that is, we created a referral mechanism that allowed people to share the mattress and share discounts for the mattress to all their friends. And so, that’s matriculated out on Facebook. It’s shared on Twitter. You can find the tweets all over the place. And that’s driven us a lot of incremental traffic. So there’s a lot of platforms out there that do it pretty much out of the box with some minor customization. So I would definitely refer the listeners to check out some of those. We got great reviews from the get go as well, from the mattress expert community. Pretty much across the board, wherever our mattress is reviewed in the blogosphere, we got very favorable ratings. And so, that traffic has been huge for us as well.

We’ve focused a lot on influencer marketing as well. So by influencer marketing, I’m talking about anyone in the social media sphere who’s got an influential following. Bloggers, podcasters, YouTuber’s. They’ve all done really well for us on performance campaigns. So we’ll, we’ll send them a mattress, they’ll try it out. Almost everyone loves the mattress, and then they’ll do a review of the mattress, an unboxing video. And customers love to see that. And so – and that’s content that lives out there. It’s there persistently. So once you start to create a volume about it, it creates great SEO for you that keeps going.

So one of the other things we did kind of, it’s a strategic decision that we made early on. Just in terms of our marketing tool set so to speak. Is we really wanted to simplify our entire process, right? So we wanted to stay lean as a team, and we wanted to choose out of the box tools that could help us grow quickly. So from the get go, we chose Shopify as our e-commerce platform. That allowed us to plugins that – and a number of other marketing systems. Email marketing with MailChimp, ReferralCandy was our referral mechanism. And so, all these different tools plug seamlessly into Shopify. And it allowed – to get up and running extremely quickly.

J: I like that.

M: There’s a lot of advantage with going with say a platform like Shopify, like you mentioned. Some people might have this perception that these platforms are for smaller companies, and people just getting started. But the advantage is exactly like you said. When it just makes doing some more of the – whether it’s email marketing or referral programs, or any of these different plugins. Which can be a nightmare to implement if you’re running on a custom platform, or something more advanced. But with something like Shopify, everything’s just – it’s almost like plug and play. You can move very, very quickly.

D: Yeah absolutely, and especially with their Shopify plus customers. They’re doing a lot of high end customization in terms of the API’s and the connections that they’re making. They do a lot of beta tests with Facebook and Pinterest, Amazon. So they’re always introducing new sales channels that a lot of other e-commerce platforms don’t have the benefit of getting. So as a Shopify customer, we’re – we’re open and able to do those things. Which is driving us new traffic. So for those people that think they might grow too big for Shopify, I think, look really closely at it, and ask Chuck (28:20?) about their case studies. They’ve got some really, really big brands doing a lot of business on Shopify.

M: I would just jump in, David, back here and just add that from a CEO’s perspective of a company, we have some late night issues occasionally. Not much has gone wrong actually. But we had some late night issues recently, and 11 o’ clock at night. We are in the very fortunate position – and we should probably reveal our hand here. That we love Shopify. They just took us to Necker Island. Winners who have built a business, and we met the CEO and the Chief Platform Officer – just remarkable people. Probably learnt as much from them as we did from the mentors that were on the island with us, including Richard Branson. But when we had a problem, I put an email out to the CEO and the Chief Platform Officer. I suppose not everyone can do that. And literally got an immediate response at 11:30 at night. And they had – one of their technical team. I think in Australia actually work on it for us, and we had it solved within 15, 20 minutes.

And so, for a company as large as they are, they’ve gone public. Today they made a huge announcement, because Amazon’s closed down. One of the huge software pieces that provided these easy to set up shops and have recommended everyone move to Shopify. So the value of Shopify’s gone up even more. But despite all that, they’re just an incredible team of young people who bootstrapped themselves for 10 years before it really took off. And we have, we had always huge gratitude for how easy it was for us to launch the company on Shopify. And a lot of admiration for their product. But that has turned into just unbelievable admiration for the team of people that actually run Shopify. They’re just an extraordinary team.

J: I like that, it’s really cool. Before we, we’re coming up on time here. One thing I really wanted to ask before we \wrapped though was – what’s been the biggest mistake that–? Whether it was maybe at the start with the planning phase? Maybe it’s a marketing mistake? We’ve talked a lot about what’s worked really well for you. What’s probably the biggest thing that’s gone wrong, that people – that other stores can avoid?

D: I wish I had an easy answer for that. We, I think that the biggest mistake – first of all we make calculated, we take calculated risks. So there’s no chance after the number of years that I’ve been in business that we would ever take a risk that could be sort of catastrophic for the company. But in July, we thought, “This is easy, and if we just increase our marketing spend, we’re going to grow like crazy.” And we substantially increased our marketing spend, putting a reasonable amount of our monthly profit at risk. And just to, just to add – unusually, we’ve been profitable and cash flow positive since our very first month. So, when we, when we plan what we’re going to do in terms of marketing – we’ll risk some of our bottom line, but we’re not risking going into a loss.

But in July, we substantially upped our marketing spend. And almost 100% of that decision hit our bottom line in a negative way. It turned out that not everything was like a faucet – that the more you spend, the more runs out. And – to the bottom line. So we, as we increased things that looked like they were scalable in terms of marketing tests that we’ve done – what we found was very diminishing returns, and that there is actually a limit to what you can get out of any single marketing platform or marketing direction. So that was July. But to give you some idea of how nimble you have to be, we turned it round and I’ve just seen the August numbers, and they’re just phenomenal. So we turned it round completely, and with a small amount of growth. Well not small, but with growth from July to August in the top line. The bottom line growth has been just fantastic.

J: That’s really cool. I like that too, because a lot of people talk about – especially that faucet. Once you have a good – a hit campaign, then all you’ve got to do is just go and spend– Just double your spend and triple your spending. If you’re spending $1000 a day, and make it $5000 a day – and you make 5 times as much. But I think that’s interesting that– I mean, it’s just that that can happen, but it’s just a – it’s a little bit more complex than that. It’s not as simple as just spending more money to make more money. So it’s really–

D: Yeah, I mean think that it’s– There’s a sort of a mix. And some things, it is a very predictable world – which is the great thing about direct marketing, and why we’re so excited about our future growth plans. And, which I can touch on a little bit if we’ve got time. But you’ve got to always, always, always temper that excitement about the growth opportunities, with a little bit of reality that you’re going to stub your toe from time to time.

J: Cool, what we could do – I mean, we are– This is usually when I’d wrap it up. But if you’ve got a minute, I’d love to hear about the growth plans.

D: Sure, let’s do that, and then you can come back to the wrap up.

J: Sure.

D: And then edit it together. Yeah so, as we look to the future, we’ve got a couple of things that we’re very excited about. Well firstly, several months ago – very early on, we raised the 9 million dollars that you talked about earlier. But we wouldn’t have done that just for the money. Like everything that, that we always try to do here – there’s always kinda 2, 3 sides of the upside – 2, 3 ways to win or more. And the money came from a fund and a firm called Title Card Capital. Title Card Capital is very closely associated with influencers and the new kind of era of influence in marketing. So their influencers that they have on their books is -as either investors or partners, include some really huge names like Adam Levine and Jimmy Kimmel and Kenny Smith, the basketball guy. And Eric Decker and Jessie James Decker is his wife, who is a country singer.

And we don’t know where we’re going to go with that, because all we’ve got is access. We don’t have any guarantees that they’re going to love our product. But we see one growth platform quite definitely being, working with these just extremely influential people. And if they love the product, working out interesting ways for them to basically interact with the mattress. Which, lots of different ways to do that. And then talk about it in a way that will kind of benefit our brand. So one of our growth areas is what we call “activating the influencers.” And we’re going down that path. We’re also looking at interesting new channels. Our competitors are looking at mobile kind of pop up stores, or ways to experience the product. We have a really interesting take on what we call “experiential spaces.” And I’m not going to give any of it away, but kind of watch this space – we are definitely doing something that I think will be very exciting.

And we’ve got international expansion. And one of the great benefits we have, that again, we put in place right at the beginning. I know that 1 or 2 of the other start-ups in the mattress space, the recent start-ups have had logistical problems on the supply side. And we just had that all buttoned up from day one. And so, as we grow, we move to other locations where we manufacture with our existing relationship – and we have a phenomenal relationship with our manufacturing partner. That included a recent move into the UK. And it includes possibilities of moving into continental Europe and into Canada. So international expansion is a third leg of growth that we’re excited about.

And then finally, Matt and his team are pretty good at digital marketing and social media – and they’re just getting better and better. And they’re currently investing in and deploying and learning how to use tools that are really going to– I have a huge amount of confidence that we’re going to just continually improve and expand the success of our digital marketing efforts, and just our core business. And so, really 4 growth platforms – international expansion, what we’re calling “experiential spaces,” activating the influencers. And then just doing more of the same. Making and becoming better and better and better at what we do. Nothing outrageously adventurous. Nothing that is going to be a huge consumption of capital. But we do have 9 million dollars that’s been sitting on the sidelines, and we intend to start deploying some of that relatively soon.

J: Very cool, cool – alright. Well before we wrap up, if people want to learn more about Leesa, or learn more about the story – maybe even buy a mattress, where’s the best place for them to do that?

D: Well there is only one place to buy that, and that’s at leesa.com. And if you do, if you go to leesa.com/reengager, you’ll find a $75 off module that’s sitting there. And it’ll preload your shopping cart with a promo code – REENGAGER75. That will give you $75 off your product, which would we’d be absolutely delighted for you to enjoy. So that, again, that is – go to leesa.com/reengager, where you’ll find in your shopping cart promo code REENGAGER75.- once you get to the shopping cart. And anytime you want to get in touch with us, you can go online and live chat with us or give us a call. There’s always someone here happy to help. And it’s been great chatting with you. I’ve enjoyed it. This is my passion, so I love talking about it. And it’s been interesting questions, thanks for the – thanks for the opportunity.

J: Thank’s David. I’ll have links to you done in the show notes at reengager.com if you missed it. David, thanks for coming on the show.

D: Thank you.

Hi there, thanks for listening to the ReEngager Podcast today. If you’d like to discover more about email marketing for online retailers and e-commerce stores, go to reengager.com. That’s R-E-E-N-G-A-G-E-R.com. Use our ROI calculator to find out how much you could increase sales with email marketing, or book in for a free strategy session with a ReEngager email marketing expert. Get started now at reengager.com. That’s R-E-E-N-G-A-G-E-R.com.

10

Click Here to Leave a Comment Below